Integrating Economic Development, Innovation, and Environmental Performance for Sustainable Futures: Insights from a Global Study

Abstract

This study aims to investigate the complex interplay between GDP per capita, innovation index, and environmental performance across a comprehensive dataset comprising 102 countries spanning from 2008 to 2022. Utilizing descriptive statistics, cointegration tests, and Granger causality analysis, the research delves into the intricate relationships among these pivotal variables. The findings unveil significant long-term equilibrium relationships among environmental performance, innovation, and economic development. Furthermore, bidirectional causal links are discerned, indicating that enhancements in environmental performance stimulate innovation, and conversely, innovation influences environmental performance. Likewise, economic development exerts influence on both innovation and environmental performance. These insightful revelations underscore the multifaceted dynamics among economic growth, innovation, and sustainability, thereby underscoring the imperative for integrated approaches to foster sustainable development. The comprehension and harnessing of these interrelationships are paramount for crafting efficacious policies and strategic business initiatives geared towards steering humanity toward a more sustainable and prosperous future.